Token prices keep dropping: Can the recent upgrade halt this trend?
In the dynamic world of cryptocurrencies, one meme coin, PUMP, has been making waves in the Solana market. Pump.fun, the entity behind PUMP, currently holds a dominant position, accounting for 91.8% of the market share.
However, recent technical analysis indicates signs of weakness for PUMP. A classic head and shoulders pattern is forming, which, if confirmed, could signal a potential downward trend. This pattern was initiated when the neckline, drawn at $0.00340, was broken during the August 18th session, resulting in a strong downward impulse towards $0.0025.
The selling pressure on PUMP has been significant. Massive transfers of PUMP tokens to centralized exchanges, such as OKX, where over $90 million worth of tokens (2.5 billion tokens) were transferred, suggest potential selling pressure.
Amidst this volatile context, Pump.fun has demonstrated its ability to adapt and bounce back. The company has implemented an aggressive share buyback program, with nearly $8.4 million worth of PUMP tokens bought in just one week. In total, Pump.fun has bought back $33 million worth of tokens, canceling out 0.729% of the total supply.
Pump.fun's revenue for the week was primarily used for buying back PUMP tokens, with 97.29% of the revenue allocated for this purpose. This buyback initiative, along with ongoing updates to their SDK, suggests an upcoming token rewards system.
Despite the rejection of PUMP from its major liquidity zone at $0.0040, indicating dominant selling pressure, Pump.fun has regained over $791 million in revenue since the 2024 attack.
It's important to note that no available information identifies any institution that acquired the largest volume of PUMP tokens for liquidity provision in the Solana meme token market on August 8, 2025.
In conclusion, while the technical analysis points towards potential downward pressure on PUMP, Pump.fun's aggressive buyback and update initiatives make it a key player to watch closely. New lows are increasingly likely in the coming weeks due to the dominant selling pressure, but Pump.fun's resilience and adaptability could lead to a potential recovery.
